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2022 (7) TMI 790 - AT - Income TaxTP Adjustment - ALP determination qua domestic transactions entered into by the assessee with its partner u/s 92BA(i) of the Act -TP Adjustment of transactions falling u/s 40A(2)(b) - HELD THAT:- We find that though all these arguments have been duly considered by the ITAT in the orders for the earlier years, particularly in the case of M/s. Raipur Steel Casting India (P) Ltd. [2020 (6) TMI 629 - ITAT KOLKATA] but after taking note the issue was decided in favour of the assessee. In the case of M/s. DVC Emta Coal Mines Ltd. (2019 (5) TMI 1709 - ITAT KOLKATA] ITAT Kolkata as reproduced the finding of the ITAT Bangalore and thereafter held that effect of Finance Act, 2017 for omission of sub-clause to Section 92BA is that it would be deemed that such clause was never been on the statute book and, therefore, no Transfer Pricing adjustment can be examined with regard to the transactions falling u/s 40A(2)(b). We are of the view that the transactions of the assessee referred to the TPO for determination of ALP could not be made subject to TP adjustment after the Finance Act, 2017, as discussed above. Consequently, no addition on account of TP Adjustment is sustainable because it has been categorically held that omission of a provision would mean that it was never on the statue book - It has to be deemed that it was not in existence in A.Y. 2014-15 and if there was no such provision for recommending the transactions u/s 40A(2)(b) for determination of ALP, there cannot be any adjustment in the income of the assessee on the ground of TP adjustment. Accordingly these grounds of the assessee are allowed. The additions made in the income of the assessee on account of TP adjustment in the domestic transaction are deleted. TDS credit denied - as contended by the assessee that the Assessing Officer has erred in treating the TDS credit of Rs.30,48,824/- only in the assessment order instead of additional claim of TDS credit of Rs.1,22,317/- on mobilization advance claimed by the assessee during the course of assessment proceedings - HELD THAT:- CIT(A) has relegated this issue to the file of the Assessing Officer with a direction to grant TDS credit. Since the ld. CIT(A) has already issued direction to the Assessing Officer, we need not issued directions separately. Rather we concur with the ld. CIT(A) on this issue. With the above observation, this ground is disposed off.
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